Rochdale coach Alan Kilshaw will leave the Hornets at the end of the campaign.
Kilshaw joined the Hornets from Sarina Crocodiles ahead of the 2016 season, will remain in charge for the rest of the Championship Shield campaign.
The club and Kilshaw have mutually agreed to part ways at the end of the season, with Rochdale’s relegation to League 1 being all but confirmed.
On his departure, Kilshaw said: “First and foremost I want to thank the club for giving me an opportunity to coach Rochdale Hornets back in 2016.
“I count myself incredibly lucky to have coached such a historic and traditional rugby league club and thank each and every player and member of support staff who I have worked with during my time here.
“I believe I have taken the club as far as I possibly can under the increased restrictions.
“This year we have faced a unique set of circumstances out of the control of the playing and coaching staff which has impacted and halted the progression we had made in 2016 and 2017.
“I believe the club can become a strong force again but need to take a step back and rebuild. At this stage of my career I feel a different challenge is more appropriate for myself and wish the club nothing but success in the future.”
Rochdale chief executive Steve Kerr has revealed that a change in structure will be a financial decision as from 2019, the club will lose over £100,000 in central distribution and its community foundation has already seen £15,000 withdrawn from the Sky Try programme, despite the club overachieving on its targets.
Kerr explained: “The situation is the same for a lot of rugby league clubs at this time of year, whether they missed out on a play-off spot or face the prospect of being relegated.
“With at least a 30% reduction in revenue and no parachute payments to fall back on we must take action now. With expected increase costs in travel and expected lower gates in League 1, we will need to think differently to raise addition income and build for the future. However difficult this is to swallow, it is happening and club are taking a pragmatic approach to dealing with the loss of revenue.
“Working with the new board of directors, it is now our responsibility to keep this club operating and we want to be going into the 2019 season in the best possible position.
“The club will now turn its attention to finding a replacement for Alan. We will need to identify suitable candidates ready for next season, but more details will follow at an appropriate time.”